The US Treasury wants to reduce the market of private stablecoins

The agency is concerned that the issuers of these assets are actively buying up treasury bills - the scale of transactions is growing, and control is disappearing.

What happened? The U.S. Treasury Department is looking at the growing stablecoin market with concern and clearly sees the Fed's digital dollar replacing it. Уreport officials noted that private issuers of stablecoins are actively buying up US Treasury bonds (or T-bills). The situation is clearly stressing the ministry: someone is buying, and the Central Bank's digital currency rates are still only on paper.

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What else is interesting

In a largereport Treasuries for the upcoming quarter have taken up a considerable share of stablecoins. It turned out that the issuers of these coins have bought $120 billion worth of U.S. Treasuries. Moreover, the lion's share - 81 billion - belongs to Tether, which supports the largest stablecoin USDT, already with a capitalization of $120.5 billion.

Even the Tether company itself has previously noted that the basis of their reserves is the US Treasury bonds. They have so many investments in government debt that Tether is ranked 18th in the list of US investors, surpassing even countries such as Germany and the UAE:

• stablecoins have become an important part of the crypto market, acting as a digital "copy" of fiat. They are used in more than 80% of all transactions. The most popular of them is USDT, with about 24 billion dollars traded in 46 hours;

• Many in the crypto world and beyond believe that such coins "pegged" to the dollar strengthen the dollar itself, increasing demand for treasury bills. But the Ministry of Finance has a different take on this - they are clearly not happy with this approach;

• The report did not ignore the cases when stablecoins lost their peg to the dollar or collapsed altogether. The connection of stablecoins to classical markets through the same treasury bills is a ticking time bomb.

If something like USDT falls, a panic sale of T-bills will begin. Currently, stablecoins occupy a small share of the market for these bills, but their growth could pose risks to T-bills, especially during the next jump in the crypto world.

The report suggests that the United States should eventually replace private stablecoins with a digital dollar managed by the Fed:

• "Just as private currencies gave way to central, state-backed currencies in the late 1800s, so too will stablecoins eventually have to give way to the digital dollar for tokenized transactions."

However, the Fed itself is in no hurry to issue a digital dollar. Many politicians, including Robert Kennedy and Senator Ted Cruz, have criticized the idea, pointing to the risks of tracking and censorship. In some states, such as Florida and North Carolina, it is already banned.

Donald Trump, if he takes the presidency again after the November 5 election,promised to meet the initiation of the digital dollar issue at gunpoint. In 2023congressmen F. Hill and D. Atchincloss have already tried to push through a similar bill, and it seems that Trump has decided to keep this line.

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